In the first quarter of 2024, Apple Inc. AAPL reportedly experienced a significant decline in iPhone shipments, while its Android competitors saw a rise.
What Happened: Apple’s iPhone shipments fell by nearly 10% in the first quarter. The global smartphone market, however, saw a 7.8% increase in shipments, reaching 289.4 million units, reported Bloomberg, citing a report by IDC.
Samsung Electronics Co. SSNLF reclaimed the top position, while budget-focused brand Transsion saw an 85% surge in shipments.
Apple’s struggles in China, the largest smartphone market globally, have impacted its overall performance. According to IDC’s preliminary figures, the company shipped five million fewer iPhones than the previous year.
See Also: Here Are 5 Funky Things You Probably Didn’t Know Your iPhone Can Do
“The smartphone market is emerging from the turbulence of the last two years both stronger and changed,” said Nabila Popal, research director at IDC. “While the top two players both saw negative growth in the first quarter, it seems Samsung is in a stronger position overall than they were in recent quarters.”
Why It Matters: Apple’s iPhone has been a dominant force in the U.S. smartphone market, with a 64% share in the fourth quarter of 2023. The launch of the iPhone 15 in September 2023 led to an 8% year-on-year growth in the U.S. smartphone market, boosting Apple’s sales.
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However, a February 2024 report revealed that despite Apple CEO Tim Cook’s claim of 99% customer satisfaction, the premium variant of the iPhone 15, the iPhone 15 Pro, was experiencing a decline in customer satisfaction ratings.
Moreover, in January, analyst Ming-Chi Kuo of TF International Securities also predicted that the Cupertino, California-based tech giant might face a significant drop in iPhone shipments by 2024 due to the rise in popularity of foldable phones, Huawei Technologies’ comeback in China, and innovative phone designs that incorporate generative artificial intelligence.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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